CPRO, a South Korea-based physical artificial intelligence security company, announced it has entered into a definitive business combination agreement with special purpose acquisition company Lakeshore Acquisition III Corp. in a deal that is expected to take the company public on a U.S. national securities exchange.
Founded as an AI camera and AI-driven security technology company, CPRO develops and sells Edge AI cameras, AI bridges, and cloud-connected data solutions for retail and industrial environments. The company said its technology enables retailers to analyze customer preferences and movement patterns while also supporting workplace safety and collaboration between humans and robots through AI-powered behavioral and operational monitoring.
The proposed transaction values the combined company at an implied pro-forma enterprise value of approximately $326 million, assuming no redemptions from the SPAC trust account. Following the completion of the merger, the combined company is expected to operate under the name “CPRO Holding Limited” and trade on a U.S. national securities exchange.
Under the terms of the merger agreement, CPRO will merge with LCCC Merger Sub Inc., a wholly owned subsidiary of Lakeshore, with CPRO surviving the merger. Lakeshore will acquire 100% of the equity securities of CPRO. In return, CPRO shareholders will receive ordinary shares in the combined company with an aggregate value of $185 million, subject to adjustments related to indebtedness.
The transaction has already been approved by the boards of directors of both companies. However, it remains subject to shareholder approval, SEC review and effectiveness of a Form F-4 registration statement, along with other customary closing conditions. The companies expect the transaction to close during the fourth quarter of 2026.
CPRO said the transaction is expected to accelerate its growth initiatives across the United States, Asia, and additional international markets as demand for AI-powered security and analytics solutions continues to expand.
CPRO said its AI-driven platform combines physical AI, retail analytics, and cloud-based data solutions to help enterprise retailers improve operational efficiency and customer engagement. The company manufactures and commercializes security products equipped with AI analysis technologies while also monetizing customer behavior data captured through its Edge AI infrastructure.
Support: Legal counsel for the transaction includes Loeb & Loeb LLP for Lakeshore and Hunter Taubman Fischer & Li LLC for CPRO. Promotive Capital is serving as M&A advisor to Lakeshore, while Maxim Group, AGBA & SME, and Year Champion Limited are advising CPRO.
KEY QUOTES:
“In the face of global AI competition, by combining with Lakeshore, CPRO will be able to tap into the public equity market to fund its aggressive growth plan going forward. We look forward to working with the Lakeshore team to complete the transaction and to list on a U.S. national securities exchange.”
Young-Soo Lee, Founder, Chairman and CEO, CPRO
“We are thrilled to partner with CPRO on its public company journey. After learning of CPRO’s business model and its position in the rapidly growing AI camera market, we immediately realized the vast potential for the Company’s growth in this very important market segment.”
Bill Chen, Chairman and CEO, Lakeshore Acquisition III Corp.
